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Javonte Co. set standards of 3 hours of direct labor per unit of product and $15.40 per hour for the labor rate. During October, the
Javonte Co. set standards of 3 hours of direct labor per unit of product and $15.40 per hour for the labor rate. During October, the company uses 17,500 hours of direct labor at a $273,000 total cost to produce 6,000 units of product. In November, the company uses 21,500 hours of direct labor at a $336,475 total cost to produce 6,400 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) October Standard Cost Actual Cost SH AH AH 0 $ 0 $ 0 $ 0 0 October Actual Cost Standard Cost AH AH > SH 0 $ 0 $ 0 $ 0 0 November Actual Cost Standard Cost SH X AH AH 0 $ $ 0 0 $ 0 0 Required Required 2 >
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